The smart investor’s 3-step guide to diversification and risk control

Investment portfolios can be tailored to your risk comfort. Conservative investors may hold about 20% equity, 60% debt, and 20% in alternatives like cash or real estate. Those with moderate risk tolerance might allocate 40–60% to equity, 30–50% to debt, and 10–20% to alternatives like gold or REITs. Aggressive investors often have 70% or more in equity, 5–20% in debt, and 10% in higher-risk options like private equity or hedge funds. The key is to balance these ratios based on your personal comfort and financial goals.